ARC Testimony before Congress

Congressional Reporting Requirements

ON FRIDAY, NOVEMBER 9, THE AMTRAK REFORM COUNCIL APPROVED A RESOLUTION FINDING THAT AMTRAK WOULD NOT ACHIEVE OPERATIONAL SELF-SUFFICIENCY BY DECEMBER 2, 2002 AS REQUIRED BY THE AMTRAK REFORM AND ACCOUNTABILITY ACT OF 1997.

THE COUNCIL'S FINDING STARTS A 90-DAY CLOCK IN WHICH THE COUNCIL MUST SUBMIT AN ACTION PLAN FOR A RESTRUCTURED AND RATIONALIZED NATIONAL RAIL PASSENGER SYSTEM TO CONGRESS.
DURING THIS SAME TIME PERIOD, AMTRAK MUST SUBMIT A PLAN TO CONGRESS FOR LIQUIDATION.

COUNCIL CHAIRMAN GILBERT E. CARMICHAEL SENT A LETTER TO THE PRESIDENT AND THE CONGRESSIONAL LEADERSHIP INFORMING THEM OF THE COUNCIL'S DECISION AND OUTLINING THE LACK OF PROGRESS BY AMTRAK IN ITS EFFORT TO ACHIEVE OPERATIONAL SELF-SUFFICIENCY.

Factors that Contributed to the Council's Decision
Amtrak is not on the glide-path to operating self-sufficiency projected in Amtrak's own strategic business plan. Amtrak's FY2001 performance was worse than its performance in FY2000, and Amtrak is in a weaker financial position than prior to passage of the ARAA. In FY2001, the Council estimates that Amtrak will lose approximately $340 million for the purposes of operational self-sufficiency, which will result in a loss of over $1 billion under Generally Accepted Accounting Principles (GAAP). While Amtrak's ridership has increased, it is substantially below the forecast in Amtrak's Strategic Business Plan.

The Vote to Make a Finding by the Council members (listed in alphabetic order):

Voting to Approve the Finding:

Bruce Chapman
Nancy Rutledge Connery
Wendell Cox
Christopher Gleason
John O. Norquist
Paul M. Weyrich, Vice Chairman

Voting Against Making a Finding:

Gilbert E. Carmichael, Chairman
James E. Coston
S. Lee Kling
Norman Y. Mineta, U.S. Secretary of Transportation (represented by Mark Yachmetz of FRA)
Charles Moneypenny